The market always comes down to supply and demand. Those factors drive price. At the moment, higher interest rates are reducing the number of people interested in buying. Not only primary home buyers but second home buyers and investors have decided to put their plans to purchase on hold until interest rates come back down. The FED has said they are most likely raising the rates again before the end of the year so be prepared to see another increase in interest rates. There’s no guarantee that rates will not continue to climb next year.
This decrease in demand has allowed supply to catch up. Our inventory in the Coastal Carolina Association of Realtors MLS has more than doubled. However, it's still at less than 3 months of inventory where a balanced market has around 6 months of housing inventory.
With less demand and more supply, prices will come down. However, with higher interest rates, buyers' mortgages will probably stay the same or even increase.
What does this mean for buyers? You have more negotiating power in this market and hopefully a few more properties to choose from. You also will have more time to make a decision. Buyers who could not move fast enough last year will have a chance to move at a speed they feel more comfortable with in today’s market.
What does this mean for sellers? Your house should still contain A LOT of equity if you bought it 3 years ago or more. However, be prepared to adjust your price if you have not had showings or offers. Also be prepared to negotiate on repairs or offer credits. Make sure your photos are top notch and your home is in the best possible condition. Make your home available for Open Houses and as many showings as possible.
Is now a good time to buy or sell? As always, that depends on you and your circumstances. I’d love to connect if you have any questions and I’m happy to talk through any scenarios so you can make the best decision possible for you and your family.